Credit Suisse 2011 Energy Summit February 10, 2011 Michael Anderson Senior Vice President and Chief Financial Officer
Exterran (NYSE: EXH) Company Overview Leading global provider of full-service natural gas compression and surface production solutions Revenues of approximately 2.5 billion1 Over 10,000 employees with operations in approximately…
Exterran Growth driven by: Comprehensive product and service offerings North America shale gas development International energy infrastructure demand Relationship with Exterran Partners Financial highlights and key…
Breadth of Product and Service Leading service solutions company, with expertise in compression, production and processing equipment Gas Gas Treating Gas Gas Gas Compression (H2S / CO2 Disposal) Dehydration Processing Metering…
Exterrans Unique Combination of Expertise Capital Manufacturing Build, Own & Operate: Sales & Service: Contract operations Fabrication Aftermarket services Engineering Service Focused on providing speed to delivery for…
Reasons for Customer Outsourcing to Exterran OPERATING EXPERTISE CAPITAL COST Superior run-time Eliminate hard asset investments Lower operating costs Refocus capital CUSTOMER BENEFITS Speed to delivery Enhanced production or…
Geographic & Product Diversification Segment Gross Margin Mix1,2 Geographic Gross Margin Mix1,2 International Contract Latin America Operations 30% 36% North America North America Contract 44% Operations 38% Aftermarket…
Worldwide Growth Opportunities North America Unconventional production drives growth opportunities Eastern Hemisphere Demand for integrated projects as natural gas infrastructure developed Latin America Established…
Exterran Growth driven by: Comprehensive product and service offerings North America shale gas development International energy infrastructure demand Relationship with Exterran Partners Financial highlights and key…
North American Shales Eagle Ford production facility in Texas Compressor units being set for operation in Pennsylvania 10
Emerging U.S. Shale Gas Plays Drive Growth Haynesville Shale: Minimal incremental compression demand Eagle Ford Shale: during initial 24-36 months Robust activity levels Significant production enhance demand for and processing…
Favorable Long-Term Market Trends Total U.S. Production1 Total U.S. Compression Fleet2 20 25 15 20 Million Horsepower Trillion cubic feet 15 10 10 5 5 0 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 1993…
Natural Gas Processing Plants in Northeast U.S. One of two plants under construction. Owned by Exterran and to be operated under a 12-year services agreement 13
Improving Horsepower Trends and Stable Pricing North America Fleet Utilization North America Revenue/HP/month1 100% 22.00 90% 20.00 19.09 19.20 19.12 18.51 18.55 18.55 18.30 79.0% 17.68 17.82 17.98 17.96 18.00 80% 77.1% 76.0%…
Exterran Growth driven by: Comprehensive product and service offerings North America shale gas development International energy infrastructure demand Relationship with Exterran Partners Financial highlights and key…
Global Growth Opportunities Exterrans ability to provide a full range of production-related equipment enhances its ability to seize growth opportunities in international markets Exterran Total Revenue ( millions)1 Annual Gas…
Increased Presence in Brazil Brazil % of Exterran International1 Revenue 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2 2008 2009 9/30/2010 Pipeline compression in Brazil 1 Includes Latin America and Eastern…
Treating and Processing Plants Oil production facility in Indonesia 18
Treating and Processing Plants Natural gas processing facility in Kazakhstan 19
Exterran Growth driven by: Comprehensive product and service offerings North America shale gas development International energy infrastructure demand Relationship with Exterran Partners Financial highlights and key…
Relationship with Exterran Partners EXH owns a majority interest, including GP, of Exterran Partners, L.P. EXLP currently has about 40% of the combined EXH/EXLP U.S. Contract Operations fleet Over time, EXH intends to offer the…
Summary Exterran Organizational Structure 1 NACO International Market Equity : 1.6 Billion (60% of Total 2 Contract Fabrication AMS NACO Business) Operations 56% LP % of Third Quarter 2010 EXH Consolidated Gross Margin 2% GP…
Exterran Growth driven by: Comprehensive product and service offerings North America shale gas development International energy infrastructure demand Relationship with Exterran Partners Financial highlights and key…
Consolidated Capital Structure 1 Pro Forma Debt Structure as of September 30, 2010 ( millions) Funded Type Amount Size Maturity Rating Senior Secured Revolver 70 850 2012 BBB-/Ba1 2 Senior Secured Term Loan 696 696 2013…
Exterran Parent Sources and Uses of Cash Sources: Operating cash flow from directly-owned assets Distributions from EXLP Proceeds from dropdowns Uses: Investment in growth projects and fleet assets Debt reduction 25
Significant Debt Reduction 3,000 2,500 2,000 Millions 1,500 EXLP 1,000 Exterran Parent 500 0 Exterran Parent debt reduced by 578 million or approximately 9 per share1 from 12/31/08 to 9/30/10. 1 Based on EXH…
Exterran Partners Relatively stable fee-based contract operations business is a good fit with distribution-focused MLP investment vehicle MLP tax structure provides relatively lower cost of capital EXLP continues to trade at a cash…
Priorities for 2011 OPERATIONAL Continue focus on expanding international business through both contract operations and fabrication work Key markets include Eastern Hemisphere, Mexico and Brazil Capitalize on North American market…
APPENDIX 29
Results - Exterran Financial Results Summary1 ( in millions) 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 Revenues North America Contract Operations 194.4 178.5 167.6 154.9 152.6 152.0 152.0 International Contract Operations 90.7…
Non-GAAP Financial Measures EBITDA, as adjusted, a non-GAAP measure, is defined as income (loss) from continuing operations plus income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of…
Non-GAAP Financial Measures (cont.)1 Three Months Ended March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, ( millions) 2009 2009 2009 2009 2010 2010 2010 Income (loss) from continuing operations (59.7) (186.6) 22.6…
Non-GAAP Financial Measures (cont.)1,2 Year Ended December 31, ( millions) 2005 2006 2007 2008 2009 Reconciliation of GAAP to Non-GAAP Financial Information: Income (loss) from continuing operations (70.5) 60.7 (3.8) (981.8) (249.2)…
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